Convergence Club Empirics: Some Dynamics and Explanations of Unequal Growth across Indian States
AbstractThis paper documents the convergence of incomes across Indian states over the period 1965 to 1998. It departs from traditional analyses of convergence by tracking the evolution of the entire income distribution, instead of standard regression and time series analyses. The findings reveal twin-peaks dynamicsâ€”the existence of two income convergence clubs, one at 50 per cent, another at 125 per cent of the national average income. Income disparities across states seem to have declined over the 1960s, only to increase over the subsequent three decades. [Discussion Paper No. 2003/77]
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convergence clubs; conditional convergence; distribution dynamics; infrastructure; capital investment; macroeconomic stability; panel data; India;
Other versions of this item:
- Sanghamitra Bandyopadhyay, 2003. "Convergence Club Empirics: Some Dynamics and Explanations of Unequal Growth across Indian States," STICERD - Distributional Analysis Research Programme Papers 69, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- Bandyopadhyay, Sanghamitra, 2003. "Convergence Club Empirics: Some Dynamics and Explanations of Unequal Growth across Indian States," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
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